Monmouth Real Estate Investment
The first stock we're looking at today, Monmouth Real Estate Investment (MNR - Get Report), isn't the biggest name on our list -- far from it. But this small-cap REIT has been getting a lot of attention from traders lately, and with a textbook pattern forming in shares right now, it's worth taking a look.
Monmouth is currently forming an ascending triangle pattern, a setup that's formed by a horizontal resistance level to the upside for shares and an uptrending support level below them. Basically, as MNR's share price bounces in between those two technically significant levels, it's getting squeezed closer and closer to a breakout above resistance at $11.70. That breakout is our buy signal .The declining volume level over the course of the pattern is another factor that makes that setup textbook. Ideally, we'd want to see a volume spike appear when shares break out. That tells us that buyers are participating in the move. If you decide to take this trade, I'd recommend putting a protective stop just under the 50-day moving average.